Salesforce is all set to buy data visualization company, Tableau for $15.7 Billion in all-stock deal, enabling them to give better user-experience in terms of data analysis and visualization.
The move will mark the Salesforce.com Inc.’s largest acquisition till date and if approved, would be “absolutely transformative” for Salesforce, Wedbush Securities analyst Steve Koenig said.
Tableau, which is based in Seattle, currently has more than 85,000 customers, including big tech companies such as Netflix Inc.,Hiscox Ltd, CBRE Group Inc,etc.
Popular for its analytic tools and chart applications, Tableau has been expanding its product line to cover data processing and machine-learning tools. Tableau is widely used to convert raw data into user-friendly charts and dashboards.
As part of the contract, the shareholders of Tableau will get 1.103 salesforce shares, which values the offer at $177.88 per share.
The decision comes days after Google announced the acquisition of analytics startup Looker for $2.6 billion last week, for improving its management of cloud data.
“Tableau helps people see and understand data, and Salesforce helps people engage and understand customers,” Salesforce CEO Marc Benioff says. “Data is the foundation of every digital transformation, and the addition of Tableau will accelerate our ability to deliver customer success by enabling a truly unified and powerful view across all of a customer’s data.”
With the deal, Salesforce is likely to see its revenue jump by around $400 million next year, with its profit margins reducing by about 38 cents per share.
With the closure of the deal, Tableau will remain headquartered in Seattle and will operate independently, led by CEO Adam Selipsky, a former Amazon Executive and his team.
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